Adjusting Entries for Prepaid Insurance

An examination of the Prepaid Insurance account shows a balance of $4,000 at the end of an accounting period, before adjustment. Prepare entries in journal form to record the insurance expense for the period under the following independent assumptions:

1. An examination of the insurance policies shows that insurance that cost $2,000 at the end of the period.

2. An examination of the insurance policies shows that insurance that cost $700 has expired during the period.